If I sell my house, what happens to mortgage if I don't move to new one immediately?

t1redmonkey

Just a quick question. Wondering what would happen to my mortgage if I sold my house now, but didn't move in to a new house straight away? So for example, if I moved back in to my parent's house while I carried on house hunting for a little while longer? Would the payments carry on or could I put them on hold until I found my new property?

pelirocco

When you sell ,your mortgage is settled

themull1

When you sell your house, your mortgage is paid off first, any left over money you get, so if you buy another house at a later date you will need to get a new mortgage.

Dave_Ham

When you sell the house, the mortgage is settled in full and you receive the balance of funds (assuming there is a balance)

Some lenders may let you "port" subject to a new application where you can retain rate. Some lenders will insist the mortgage is re-started within 1 month, 3 months or 6 months depending upon lender...

t1redmonkey

How can the mortgage be paid off though, since I still have 26k left on it at the moment? Do I have to get a loan to pay it off? Sorry probably stupid questions I know!

Bennifred

It gats paid from the money you sell the house for.

holly_hobby

Do you mean that you are selling your property for 26k less than the outstanding mortgage ?

If so, and if you don't have the additional funds to settle, you will need to discuss this situation with the lender BEFORE you exchange contracts at the latest - as they can refuse to remove the charge to give free title, which is what your purchaser's solicitor and mortgagee will insist upon.

Hope this helps

Holly

t1redmonkey

Ah no basically I have 26k left to pay on the mortgage - I initially put down a 70k deposit and the purchase was for 97k. I will be selling my property for about the same, or a little bit more, than what I paid for it.

I understand now I think, basically if I sold for say, 105k, my mortgage lender/solicitor would pay off the 97k from that and then give me back the excess?

Naf

Pay what 97k?
If you have 26k left to pay, then they'll take that and you'll get the remaining 105-26 = 79k.

t1redmonkey

Makes sense now, thank you